B.Grimm Power, a power producer in Thailand, has signed an agreement to acquire two power plants from Sime Darby Energy (SDEPL), an indirect wholly-owned subsidiary of Sime Darby Bhd, for a total consideration of MYR522.9m ($162.9m).
Under the terms of the deal, Sime Darby indirect subsidiary Sime Darby Energy Pte (SDE) is divesting all of its shares in Sime Darby Power Company (SDPC), Sime Darby LCP Power Company (SDLP) and Sime Darby O&M (Thailand) Company (SOMT).
Sime Darby president and group chief executive Tan Sri Dato' Seri Mohd Bakke Salleh said, "The decision to dispose the power business in Thailand is in tandem with Sime Darby's long-term business strategy to consolidate and focus our attention on our core businesses."
Located in Laem Chabang Industrial Estate in Chonburi province Thailand, the two gas-fired combined-cycle cogeneration plants have a combined capacity of 163MW and steam capacity of 70t/h.
The power plants, with a strong customer base for electricity and steam, are the sole provider of power and steam generation in the industrial estate.
B.Grimm and B.Grimm Power chairman Harald Link said that the acquisition of the two plants is associated with B.Grimm Power's strategy to grow its small power producer cogeneration business.
The acquisition is considered as a strategic path to expand B.Grimm Power generating capacity and reach the aim of installed capacity above 2,000MW within 2019.
B.Grimm Power President Preeyanart Soontornwata said B.Grimm Power will enhance its total revenue in 2014 from approximately 19,000 million Bahts to 23,200 million Baht following completion of the acquisition.